Given the domestic structural weaknesses and high debt levels, the US economy is vulnerable to external shocks and high oil prices, says Investica.

April 21 &ndash; US Treasury Secretary Snow has described the US economy as being in a sweet spot, but there will be increased fears that conditions are now souring rapidly with evidence of slower growth and rising inflation.

If the combination of weaker demand and price pressures continues, the Federal Reserve will face a very difficult...